New York, NY (PRWEB) November 05, 2013
On October 28, 2013, Bloomberg News published an article, “The Dangers of Being Debt-Averse. Really.”, that highlighted the problems that can arise from being too debt averse such as failing to make investments that could ultimately create more wealth or maintaining liquid assets. In response, MoneyMermaid.com releases a list of instances in which going into debt as an investment is actually a smart financial move.
In an interview with wealth manager Thomas Anderson, he discusses a subsection of Americans who are too debt averse and focus too much on paying down debt. While there are benefits to limiting personal debt, in many cases people repay debt to the point of reducing liquidity by a significant percentage, which leads to financial strain.
In other cases, some fail to make investments that will later generate wealth. Starting a portfolio, for example, or pursuing a degree in higher education that results in a pay raise may means managing debt instead of eliminating debt altogether.
In light of the points brought up by Thomas Anderson, Money Mermaid suggests that Americans consider undertaking the following types of ‘good debt’:
1. Education resulting in higher incomes
2. Home Mortgage
3. Improvements for Future Savings
4. Investment portfolio
Taking on good debt can still lead to financial struggle if not planned for appropriately. For those who are having trouble repaying with either good or bad debt, MoneyMermaid.com recommends this website to learn more about dealing with debt and personal finance.
Bloomberg News published an article that discusses the downside of being too risk averse, as some Americans fail to generate wealth by focusing on how to reduce debt. While debt certainly has disadvantages, MoneyMermaid.com suggests undertaking ‘good debt’ when creating wealth is possible.
MoneyMermaid.com is an online resource that provides expert advice and insights to assist people in reaching their financial goals The website is particularly targeted to help those with limited financial experience navigate personal finance.